“A myth to dispel and skills to build”
One of the most frequent inconsistencies in the debate on foreign investment in San Marino is that of not mentioning its prerequisite: a treaty on double taxation. What interest would a US, German, French, Japanese, Chinese, Russian, Spanish or English investor have in investing in San Marino, knowing that the profits deriving from his investment are subject to both San Marino taxation and that of his country? The answer is simple: none. And if he did do it would be asking questions about which would be his real advantage to him. In order to be able to rationally address the issue, it is necessary to consider that the Republic of San Marino has signed treaties against double taxation only with two of the first twenty nations in the world for direct outgoing investments, namely Luxembourg and Singapore, countries where it is notoriously not the decision-making centers of large companies reside, which often turn to them only in terms of tax or logistical advantages. More generally, the Republic of San Marino has signed only about thirty treaties against double taxation, almost exclusively with countries that do not excel in terms of outgoing foreign investments. For example: Seychelles, Saint Kitts and Nevis, Cyprus, Barbados, Malta, Albania, Libya, Azerbaijan, Ukraine, Bulgaria etc. To define the reasons behind the poor successes in the field of attracting foreign direct investments, a second reflection must be stimulated on the requirement that should be at the basis of the best ways of attracting investments: skills. To better understand the indispensability of this requirement, it is sufficient to focus on the average professional profile of the foreign interlocutor interested in an investment. In almost all cases he is a manager, often the Administration and Finance Director of a private company with above-average transnational skills. Starting from an analysis, too often neglected, it is legitimate to hope that the level of and experience of the interlocutor of San Marino institutional skills must be as close as possible to that of the foreign manager, including a wealth of skills of the general principles that regulate the activities of a accountant, a notary and a labor law attorney. Tax regimes, customs regimes, cost and flexibility of work, establishment and operation of companies are the most discussed topics at the first meetings with potential investors. The RETE Desk supports the demand for the skills necessary for the implementation of an economic development plan to be a central theme, necessary to go beyond the simple evaluation of the presumed goodness of the plan “on paper”. The RETE Desk plans propose solutions for economic development that are easily practicable, as they start from the careful analysis of the investment points of the current system of attraction of the effects, the vision of a country that is negatively affected by a reduced international activity and who is attentive in the search and enhancement of the best skills.
cs Rete Desk